European actions attempt to move forward as focus remains on the spread of the global pandemic

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European stocks were heading for a weekly loss, despite lingering concerns over the spread of the coronavirus in the United States and further outbreaks elsewhere in the world, although stocks attempted to push higher on Friday.
Shaking off a loss of openness, the Stoxx Europe 600 SXXP index,
+ 0,24%
rose 0.3% to 364.82 after three consecutive losing streak. So far, the index has lost 0.8% for the week. Elsewhere, the German DAX DAX,
-0,05%
up 0.4%, the French CAC 40 PX1,
+ 0,31%
up 0.2% and the FTSE 100 UKX index,
+ 0,37%
increased by 0.2%.

Dow Jones Industrial Average futures YM00,
-0,46%
compared losses, drop of 100 points and S&P 500 ES00,
-0,36%
and Nasdaq-100 future NQ00,
-0,15%
0.4% and 0.3% respectively. The Dow DJIA,
-1,38%
dropped more than 300 points on Thursday with the S&P 500 SPX,
-0,56%
also closing lower, although the Nasdaq Composite COMP,
+ 0,52%
took over a lead with a 0.5% again.
Concerns over coronaviruses dominated after the United States saw its sixth daily record for coronavirus cases in 10 days on Thursday, with deaths also increasing in some states. “The closing of schools in Hong Kong and the tightening of virus restrictions in Australia also fueled the underlying negative mood at the end of the week,” said Michael Hewson, chief market analyst at CMC Markets, in a note to customers.

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Asian markets fell, reflecting the fear that any global economic recovery would stall amid these rising cases, with Tokyo also reporting an increase in infections. The CSI 300 China 000300 index,
-1,81%
interrupted a winning streak of 8 sessions, with a loss of 1.8%. The index climbed 14% this month, in part due to government-backed newspaper articles applauding the market. This has raised questions as to whether China’s latest rally will collapse as it did in 2015.
Economic joy came from Italy, which said industrial production jumped 42.1% in May, while France also saw its production rebound sharply. The UK has announced that it will allow gymnasiums, tattoo parlors and swimming pools to reopen.
Still, investors are increasingly faced with the fact that “any economic recovery is unlikely to be V-shaped, with a range of companies starting to report thousands of job losses this week,” said Hewson.
“This month alone, we saw John Lewis, Boots, Burger King, Rolls-Royce, Airbus, Upper Crust and Harrods, to name a few, announcing thousands of layoffs, in addition cuts announced last month by major airlines, energy and auto companies, bringing total jobs at risk to more than 100,000, “he said.
Investors will begin to hear how companies weathered during Covid-19, with next week marking the start of the second quarter earnings season.
Oil losses from oil companies have helped Europe become positive. Crude oil price CL.1,
-2,22%
remained weak, but the actions of BP PLC BP,
-4,79%
BP,
-0,39%
et Royal Dutch Shell Group PLC RDS.A,
-4,48%
RDSA,
-0,03%
slightly increased compared to a decrease of 1% earlier. The International Energy Agency has stepped up its forecast for oil demand in 2020, but has also warned that the pandemic could hinder this view, Reuters reported.
Among the winners, technological stocks fueled the American strength in this sector, with STMicroelectronics STM,
+ 5.09%
up 2.6%, and Infineon Technologies AG IFX,
+ 1,07%
up 2%.

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